Callaway Golf Company (MODG)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 245,000 | 239,000 | 235,200 | 252,700 | 284,700 | 263,174 | 266,874 | 230,874 | 466,074 | 486,043 | 477,840 | 209,707 | -80,634 | -68,657 | -96,539 | 113,669 | 134,441 | 120,252 | 89,415 | 122,678 |
| Long-term debt | US$ in thousands | 1,518,200 | 1,521,500 | 1,525,400 | 1,529,500 | 1,176,300 | 1,065,900 | 1,067,400 | 1,070,500 | 1,025,300 | 1,049,020 | 1,064,430 | 1,174,990 | 650,564 | 651,011 | 628,851 | 453,774 | 443,259 | 445,019 | 465,826 | 465,756 |
| Total stockholders’ equity | US$ in thousands | 3,878,200 | 3,951,900 | 3,932,700 | 3,811,100 | 3,774,300 | 3,806,500 | 3,790,200 | 3,700,500 | 3,682,900 | 3,721,930 | 3,739,460 | 3,612,820 | 675,644 | 688,534 | 624,548 | 759,967 | 767,353 | 777,356 | 761,936 | 741,854 |
| Return on total capital | 4.54% | 4.37% | 4.31% | 4.73% | 5.75% | 5.40% | 5.49% | 4.84% | 9.90% | 10.19% | 9.95% | 4.38% | -6.08% | -5.13% | -7.70% | 9.37% | 11.11% | 9.84% | 7.28% | 10.16% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $245,000K ÷ ($1,518,200K + $3,878,200K)
= 4.54%
Topgolf Callaway Brands Corp's return on total capital has shown some fluctuation over the past eight quarters. The company's return on total capital ranged from 3.64% to 4.48% during this period. It is noticeable that the return on total capital was highest in Q2 2022 at 4.48% and lowest in Q2 2023 at 3.64%.
Despite the fluctuations, the return on total capital has generally been within a relatively narrow range, indicating that the company has been able to effectively utilize its total capital to generate returns for its stakeholders. However, the downward trend from Q2 2022 to Q2 2023 may raise concerns regarding the company's overall financial performance and capital efficiency, which may require further investigation and strategic planning.
Peer comparison
Dec 31, 2023